Class 12 Business Studies Previous Year Paper - 3 | Business Studies (BST) Class 12 - Commerce PDF Download

 Page 1


 
 
 
  
Date:                                        Class: XII  
Business Studies  
Time:3hrs                                       M. M: 80 
 
General Instructions: 
 
1. Answer to questions carrying 1 mark may be from one word to one sentence. 
2. Answer to questions carrying 3 marks may be from 50-75 words. 
3. Answer to questions carrying 4 -5 marks may be about 150 words.  
4. Answer to questions carrying 6 marks may be about 200 words. 
5. Attempt all parts of a question together. 
 
 
1 “In an organization employees are happy and satisfied, there is no chaos and the effect of 
management is noticeable”. Which feature of management is highlighted by this statement? 
1 
2 Name the incentive in which benefits like car allowance, rent free accommodation, medical 
facilities, etc. are offered to an employee. 
1 
3 Bright industries have adopted a new policy of cost cutting. Instead of appointing employees 
on permanent basis, it has started recruiting them as ‘trainees’ on temporary basis to avoid 
increment benefits. It immensely benefitted the company in financial terms. However, after 
one month, the trainees started leaving the company due to job insecurity. As a result, 
financial savings made by the company were spent in the process of new recruitment. 
Identify the Fayol’s principle not observed by Bright industries. 
1 
4 How does Staffing ensure optimum utilization of human resources? 1 
5 Why do employees become lethargic when the organisation uses internal sources of 
recruitment? State.  
1 
6 Identify the principle of scientific management which focuses on change in the attitude of 
workers and management towards one another from competition to co – operation. 
1 
7 At which level of management is planning function of management conducted? 1 
8 Laxmi Chemicals Ltd., a soap manufacturing company wanted to increase its market share 
from 30% to 55% in the long run. A recent report submitted by the Research &Development 
Department of the company had predicted a growing trend of herbal and organic products. On 
the basis of this report the company decided to diversify into new variety of soaps with 
natural ingredients having benefits and fragrances of Jasmine, Rose, Lavendear, Mogra, 
Lemon Grass, Green Apple, Strawberry etc. The Unique Selling Proposition (USP) was to 
promote eco-friendly living in the contemporary life style. The company decided to allocate 
1 
Page 2


 
 
 
  
Date:                                        Class: XII  
Business Studies  
Time:3hrs                                       M. M: 80 
 
General Instructions: 
 
1. Answer to questions carrying 1 mark may be from one word to one sentence. 
2. Answer to questions carrying 3 marks may be from 50-75 words. 
3. Answer to questions carrying 4 -5 marks may be about 150 words.  
4. Answer to questions carrying 6 marks may be about 200 words. 
5. Attempt all parts of a question together. 
 
 
1 “In an organization employees are happy and satisfied, there is no chaos and the effect of 
management is noticeable”. Which feature of management is highlighted by this statement? 
1 
2 Name the incentive in which benefits like car allowance, rent free accommodation, medical 
facilities, etc. are offered to an employee. 
1 
3 Bright industries have adopted a new policy of cost cutting. Instead of appointing employees 
on permanent basis, it has started recruiting them as ‘trainees’ on temporary basis to avoid 
increment benefits. It immensely benefitted the company in financial terms. However, after 
one month, the trainees started leaving the company due to job insecurity. As a result, 
financial savings made by the company were spent in the process of new recruitment. 
Identify the Fayol’s principle not observed by Bright industries. 
1 
4 How does Staffing ensure optimum utilization of human resources? 1 
5 Why do employees become lethargic when the organisation uses internal sources of 
recruitment? State.  
1 
6 Identify the principle of scientific management which focuses on change in the attitude of 
workers and management towards one another from competition to co – operation. 
1 
7 At which level of management is planning function of management conducted? 1 
8 Laxmi Chemicals Ltd., a soap manufacturing company wanted to increase its market share 
from 30% to 55% in the long run. A recent report submitted by the Research &Development 
Department of the company had predicted a growing trend of herbal and organic products. On 
the basis of this report the company decided to diversify into new variety of soaps with 
natural ingredients having benefits and fragrances of Jasmine, Rose, Lavendear, Mogra, 
Lemon Grass, Green Apple, Strawberry etc. The Unique Selling Proposition (USP) was to 
promote eco-friendly living in the contemporary life style. The company decided to allocate 
1 
XII B Page 2 of 4 
 
Rs.30 crores to achieve the objective.  Identify the type of plan mentioned above which will 
help the company to acquire dominant position in the market.  
9 Differentiate between “Unity of Command” and “Unity of Direction” on three basis. 3 
10 i. Is controlling the last function of management? Explain.  
ii. How does controlling help in ‘ensuring order and discipline’? 
iii. Why is it said that “controlling is looking back”? 
3 
11 ‘If anything goes wrong with the performance of key activities, the entire organization 
suffers. Therefore, the organization should focus on them.’ Explain the statement with a 
suitable example.    
3 
 
12 
 
What is meant by ‘co – ordination’? Explain any two points of its importance in management. 3 
13 
 
“Planning helps the manager to look into the future and make a choice from amongst various 
alternative courses of action”. Which point related to importance of planning has been 
referred to in the above line? Name and explain it. 
Also explain any two other points related to the importance of planning. 
3 
14 An environmental conscious company 'GVN Ltd.' has its business in all parts of the country. 
The company follows certain well - defined business principles that result to minimize the 
employee turnover. Following are some of the environmental factors followed by GVN Ltd.: 
i. Honour the law of the country as well as that of the states in which it operates. 
ii. Respect the culture and customs of all states.  
iii. Provide clean and safe products to enhance the quality of life throughout the country.  
iv. Develop a culture in the company that enhances individual creativity and team work 
while honouring mutual trust and respect between management and labour.  
From the above (i) Identify and state any one general principle of management and any one 
dimension of business environment.  
(ii) Also identify any two values which the above guiding principles and environmental 
factors are conveying to the society.   
4 
15  Neeraj, a sales representative of 'Omida Ltd.' has changed seven jobs in the last one year. He 
is a hard working person but is not able to finalise deals with the customers due to his 
inadequate vocabulary and omission of needed words. Sometimes he uses wrong words 
because of which intended meaning is not conveyed. All this created a mis-understanding 
between him and his clients. 
(a) Identify the communication barrier discussed above.  
(b) State the category of this communication barrier.  
(c) Explain two other communication barriers of the same category.     
                 
4 
16 Explain the impact of policy changes on business and industry. (any four) 4 
Page 3


 
 
 
  
Date:                                        Class: XII  
Business Studies  
Time:3hrs                                       M. M: 80 
 
General Instructions: 
 
1. Answer to questions carrying 1 mark may be from one word to one sentence. 
2. Answer to questions carrying 3 marks may be from 50-75 words. 
3. Answer to questions carrying 4 -5 marks may be about 150 words.  
4. Answer to questions carrying 6 marks may be about 200 words. 
5. Attempt all parts of a question together. 
 
 
1 “In an organization employees are happy and satisfied, there is no chaos and the effect of 
management is noticeable”. Which feature of management is highlighted by this statement? 
1 
2 Name the incentive in which benefits like car allowance, rent free accommodation, medical 
facilities, etc. are offered to an employee. 
1 
3 Bright industries have adopted a new policy of cost cutting. Instead of appointing employees 
on permanent basis, it has started recruiting them as ‘trainees’ on temporary basis to avoid 
increment benefits. It immensely benefitted the company in financial terms. However, after 
one month, the trainees started leaving the company due to job insecurity. As a result, 
financial savings made by the company were spent in the process of new recruitment. 
Identify the Fayol’s principle not observed by Bright industries. 
1 
4 How does Staffing ensure optimum utilization of human resources? 1 
5 Why do employees become lethargic when the organisation uses internal sources of 
recruitment? State.  
1 
6 Identify the principle of scientific management which focuses on change in the attitude of 
workers and management towards one another from competition to co – operation. 
1 
7 At which level of management is planning function of management conducted? 1 
8 Laxmi Chemicals Ltd., a soap manufacturing company wanted to increase its market share 
from 30% to 55% in the long run. A recent report submitted by the Research &Development 
Department of the company had predicted a growing trend of herbal and organic products. On 
the basis of this report the company decided to diversify into new variety of soaps with 
natural ingredients having benefits and fragrances of Jasmine, Rose, Lavendear, Mogra, 
Lemon Grass, Green Apple, Strawberry etc. The Unique Selling Proposition (USP) was to 
promote eco-friendly living in the contemporary life style. The company decided to allocate 
1 
XII B Page 2 of 4 
 
Rs.30 crores to achieve the objective.  Identify the type of plan mentioned above which will 
help the company to acquire dominant position in the market.  
9 Differentiate between “Unity of Command” and “Unity of Direction” on three basis. 3 
10 i. Is controlling the last function of management? Explain.  
ii. How does controlling help in ‘ensuring order and discipline’? 
iii. Why is it said that “controlling is looking back”? 
3 
11 ‘If anything goes wrong with the performance of key activities, the entire organization 
suffers. Therefore, the organization should focus on them.’ Explain the statement with a 
suitable example.    
3 
 
12 
 
What is meant by ‘co – ordination’? Explain any two points of its importance in management. 3 
13 
 
“Planning helps the manager to look into the future and make a choice from amongst various 
alternative courses of action”. Which point related to importance of planning has been 
referred to in the above line? Name and explain it. 
Also explain any two other points related to the importance of planning. 
3 
14 An environmental conscious company 'GVN Ltd.' has its business in all parts of the country. 
The company follows certain well - defined business principles that result to minimize the 
employee turnover. Following are some of the environmental factors followed by GVN Ltd.: 
i. Honour the law of the country as well as that of the states in which it operates. 
ii. Respect the culture and customs of all states.  
iii. Provide clean and safe products to enhance the quality of life throughout the country.  
iv. Develop a culture in the company that enhances individual creativity and team work 
while honouring mutual trust and respect between management and labour.  
From the above (i) Identify and state any one general principle of management and any one 
dimension of business environment.  
(ii) Also identify any two values which the above guiding principles and environmental 
factors are conveying to the society.   
4 
15  Neeraj, a sales representative of 'Omida Ltd.' has changed seven jobs in the last one year. He 
is a hard working person but is not able to finalise deals with the customers due to his 
inadequate vocabulary and omission of needed words. Sometimes he uses wrong words 
because of which intended meaning is not conveyed. All this created a mis-understanding 
between him and his clients. 
(a) Identify the communication barrier discussed above.  
(b) State the category of this communication barrier.  
(c) Explain two other communication barriers of the same category.     
                 
4 
16 Explain the impact of policy changes on business and industry. (any four) 4 
XII B Page 3 of 4 
 
17 “It helps a manager to extend his area of operations as without it, his activities would be 
restricted to only what he himself can do”. Identify the activity referred to, in the above 
statement and state its elements.    
4 
18 Define the term ‘Leadership’ and explain its various styles.   4 
19 Name and explain the following methods of training:  
i. Trainee learns under the guidance of a master worker. 
ii. Trainees learn on the equipment they will be using. 
iii. Joint programme of training in which educational institutes and business firms 
cooperate. 
iv. The employees are introduced to their new jobs, fellow employees and to the 
company.  
4 
20  Two years ago Madhu completed her degree in Food Technology. She worked for sometime 
in a company manufacturing chutneys, pickles and murabbas. She was not happy in the 
company and decided to have her own organic food processing unit for the same. She set the 
objectives and the targets and formulated action plan to achieve the same.  
One of her objective was to earn 10 % profit on the amount invested in the first year. It was 
decided that raw materials like fruits, vegetables, spices, etc. will be purchased on 3 month’s 
credit from farmers cultivating organic crops only. She also decided to follow the steps 
required for marketing of the products through her own outlets. She appointed Mohan as a 
Production Manager who decides the exact manner in which the production activities are to 
be carried out. Mohan also prepared a statement showing the number of workers that will be 
required in the factory throughout the year. Madhu informed Mohan about her sales target for 
different products area wise for the forthcoming quarter. While working on the production 
table, a penalty of Rs. 100 per day for not wearing the caps, gloves and apron was announced. 
Quoting lines from the above para, identify and define different types of plans discussed. 
5 
21  Name and explain the technique of Scientific management which: 
i. Is the strongest motivator for a worker to reach standard performance. 
ii. Helps in establishing inter – changeability of manufactured parts and products.   
5 
22 A.R. Rehman is the first Indian to win Oscar award for his composition 'Jai Ho'. His 
composition of music is unique and different as he has used the singing notes in a manner that 
is entirely his own interpretation. Like A.R. Rehman ,  Rakesh, General Manager in Wave 
Ltd., uses his knowledge of management in a unique and different manner.  All the 
employees working under his guidance are happy and satisfied because of his behaviour.  He 
everyday rewards/appreciates the employees for coming office on time, performing their 
assigned tasks with best of their capabilities.  
i. Identify and explain the nature of the management highlighted above. 
ii. Also state two other ways in which nature of management can be explained. 
5 
Page 4


 
 
 
  
Date:                                        Class: XII  
Business Studies  
Time:3hrs                                       M. M: 80 
 
General Instructions: 
 
1. Answer to questions carrying 1 mark may be from one word to one sentence. 
2. Answer to questions carrying 3 marks may be from 50-75 words. 
3. Answer to questions carrying 4 -5 marks may be about 150 words.  
4. Answer to questions carrying 6 marks may be about 200 words. 
5. Attempt all parts of a question together. 
 
 
1 “In an organization employees are happy and satisfied, there is no chaos and the effect of 
management is noticeable”. Which feature of management is highlighted by this statement? 
1 
2 Name the incentive in which benefits like car allowance, rent free accommodation, medical 
facilities, etc. are offered to an employee. 
1 
3 Bright industries have adopted a new policy of cost cutting. Instead of appointing employees 
on permanent basis, it has started recruiting them as ‘trainees’ on temporary basis to avoid 
increment benefits. It immensely benefitted the company in financial terms. However, after 
one month, the trainees started leaving the company due to job insecurity. As a result, 
financial savings made by the company were spent in the process of new recruitment. 
Identify the Fayol’s principle not observed by Bright industries. 
1 
4 How does Staffing ensure optimum utilization of human resources? 1 
5 Why do employees become lethargic when the organisation uses internal sources of 
recruitment? State.  
1 
6 Identify the principle of scientific management which focuses on change in the attitude of 
workers and management towards one another from competition to co – operation. 
1 
7 At which level of management is planning function of management conducted? 1 
8 Laxmi Chemicals Ltd., a soap manufacturing company wanted to increase its market share 
from 30% to 55% in the long run. A recent report submitted by the Research &Development 
Department of the company had predicted a growing trend of herbal and organic products. On 
the basis of this report the company decided to diversify into new variety of soaps with 
natural ingredients having benefits and fragrances of Jasmine, Rose, Lavendear, Mogra, 
Lemon Grass, Green Apple, Strawberry etc. The Unique Selling Proposition (USP) was to 
promote eco-friendly living in the contemporary life style. The company decided to allocate 
1 
XII B Page 2 of 4 
 
Rs.30 crores to achieve the objective.  Identify the type of plan mentioned above which will 
help the company to acquire dominant position in the market.  
9 Differentiate between “Unity of Command” and “Unity of Direction” on three basis. 3 
10 i. Is controlling the last function of management? Explain.  
ii. How does controlling help in ‘ensuring order and discipline’? 
iii. Why is it said that “controlling is looking back”? 
3 
11 ‘If anything goes wrong with the performance of key activities, the entire organization 
suffers. Therefore, the organization should focus on them.’ Explain the statement with a 
suitable example.    
3 
 
12 
 
What is meant by ‘co – ordination’? Explain any two points of its importance in management. 3 
13 
 
“Planning helps the manager to look into the future and make a choice from amongst various 
alternative courses of action”. Which point related to importance of planning has been 
referred to in the above line? Name and explain it. 
Also explain any two other points related to the importance of planning. 
3 
14 An environmental conscious company 'GVN Ltd.' has its business in all parts of the country. 
The company follows certain well - defined business principles that result to minimize the 
employee turnover. Following are some of the environmental factors followed by GVN Ltd.: 
i. Honour the law of the country as well as that of the states in which it operates. 
ii. Respect the culture and customs of all states.  
iii. Provide clean and safe products to enhance the quality of life throughout the country.  
iv. Develop a culture in the company that enhances individual creativity and team work 
while honouring mutual trust and respect between management and labour.  
From the above (i) Identify and state any one general principle of management and any one 
dimension of business environment.  
(ii) Also identify any two values which the above guiding principles and environmental 
factors are conveying to the society.   
4 
15  Neeraj, a sales representative of 'Omida Ltd.' has changed seven jobs in the last one year. He 
is a hard working person but is not able to finalise deals with the customers due to his 
inadequate vocabulary and omission of needed words. Sometimes he uses wrong words 
because of which intended meaning is not conveyed. All this created a mis-understanding 
between him and his clients. 
(a) Identify the communication barrier discussed above.  
(b) State the category of this communication barrier.  
(c) Explain two other communication barriers of the same category.     
                 
4 
16 Explain the impact of policy changes on business and industry. (any four) 4 
XII B Page 3 of 4 
 
17 “It helps a manager to extend his area of operations as without it, his activities would be 
restricted to only what he himself can do”. Identify the activity referred to, in the above 
statement and state its elements.    
4 
18 Define the term ‘Leadership’ and explain its various styles.   4 
19 Name and explain the following methods of training:  
i. Trainee learns under the guidance of a master worker. 
ii. Trainees learn on the equipment they will be using. 
iii. Joint programme of training in which educational institutes and business firms 
cooperate. 
iv. The employees are introduced to their new jobs, fellow employees and to the 
company.  
4 
20  Two years ago Madhu completed her degree in Food Technology. She worked for sometime 
in a company manufacturing chutneys, pickles and murabbas. She was not happy in the 
company and decided to have her own organic food processing unit for the same. She set the 
objectives and the targets and formulated action plan to achieve the same.  
One of her objective was to earn 10 % profit on the amount invested in the first year. It was 
decided that raw materials like fruits, vegetables, spices, etc. will be purchased on 3 month’s 
credit from farmers cultivating organic crops only. She also decided to follow the steps 
required for marketing of the products through her own outlets. She appointed Mohan as a 
Production Manager who decides the exact manner in which the production activities are to 
be carried out. Mohan also prepared a statement showing the number of workers that will be 
required in the factory throughout the year. Madhu informed Mohan about her sales target for 
different products area wise for the forthcoming quarter. While working on the production 
table, a penalty of Rs. 100 per day for not wearing the caps, gloves and apron was announced. 
Quoting lines from the above para, identify and define different types of plans discussed. 
5 
21  Name and explain the technique of Scientific management which: 
i. Is the strongest motivator for a worker to reach standard performance. 
ii. Helps in establishing inter – changeability of manufactured parts and products.   
5 
22 A.R. Rehman is the first Indian to win Oscar award for his composition 'Jai Ho'. His 
composition of music is unique and different as he has used the singing notes in a manner that 
is entirely his own interpretation. Like A.R. Rehman ,  Rakesh, General Manager in Wave 
Ltd., uses his knowledge of management in a unique and different manner.  All the 
employees working under his guidance are happy and satisfied because of his behaviour.  He 
everyday rewards/appreciates the employees for coming office on time, performing their 
assigned tasks with best of their capabilities.  
i. Identify and explain the nature of the management highlighted above. 
ii. Also state two other ways in which nature of management can be explained. 
5 
XII B Page 4 of 4 
 
iii.Identify any one value that Rakesh wants to inculcate in his employees.  
 
23 Kiran Industries is a company manufacturing office furniture. The company chose to 
diversify its operations to improve its growth potential and increase market share. As the 
project was important many alternatives were generated for the purpose and were thoroughly 
discussed amongst the members of the organisation. After evaluating the various alternatives 
Sukhvinder, the Managing Director of the company decided that they should add ‘Home 
Interiors and Furnishings’ as a new line of business activity.   
 a) Name the framework, which the diversified organisation should adopt, to enable it to cope 
with the emerging complexity? Give three reasons in support of your answer.   
b) State any two limitations of this framework.         
       
6 
24 Explain the various steps involved in the process of selection of employees. 
 
6 
25 Smita had been working as an assistant manager with 'Johnson Enterprises' for the last ten 
years. She was very popular amongst her colleagues because of her commitment and 
dedication towards the work. When the manager senior to her retired, all her colleagues 
thought that now Smita would be promoted. But to everyone's surprise the vacant post was 
filled by an outsider, Mrs. Rita. Smita felt demoralised and her performance started declining. 
She would abstain herself often and could not meet her targets. 
Mrs. Rita was a good leader, who would not only instruct her subordinates but would also 
guide and inspire them. She noticed Smita's behaviour and felt that her performance could be 
improved. She started involving Smita in decision making-issues related to the organization 
and made her a part of high level joint-management committee. Smita was now punctual in 
office and her performance started improving. 
i. Identify the function of management being performed by Rita.  
ii. Name the element of the above function of management which helped Rita to 
improve Smita's behaviour. 
iii. State any four features of the element identified in (ii) above.     
6 
 
Page 5


 
 
 
  
Date:                                        Class: XII  
Business Studies  
Time:3hrs                                       M. M: 80 
 
General Instructions: 
 
1. Answer to questions carrying 1 mark may be from one word to one sentence. 
2. Answer to questions carrying 3 marks may be from 50-75 words. 
3. Answer to questions carrying 4 -5 marks may be about 150 words.  
4. Answer to questions carrying 6 marks may be about 200 words. 
5. Attempt all parts of a question together. 
 
 
1 “In an organization employees are happy and satisfied, there is no chaos and the effect of 
management is noticeable”. Which feature of management is highlighted by this statement? 
1 
2 Name the incentive in which benefits like car allowance, rent free accommodation, medical 
facilities, etc. are offered to an employee. 
1 
3 Bright industries have adopted a new policy of cost cutting. Instead of appointing employees 
on permanent basis, it has started recruiting them as ‘trainees’ on temporary basis to avoid 
increment benefits. It immensely benefitted the company in financial terms. However, after 
one month, the trainees started leaving the company due to job insecurity. As a result, 
financial savings made by the company were spent in the process of new recruitment. 
Identify the Fayol’s principle not observed by Bright industries. 
1 
4 How does Staffing ensure optimum utilization of human resources? 1 
5 Why do employees become lethargic when the organisation uses internal sources of 
recruitment? State.  
1 
6 Identify the principle of scientific management which focuses on change in the attitude of 
workers and management towards one another from competition to co – operation. 
1 
7 At which level of management is planning function of management conducted? 1 
8 Laxmi Chemicals Ltd., a soap manufacturing company wanted to increase its market share 
from 30% to 55% in the long run. A recent report submitted by the Research &Development 
Department of the company had predicted a growing trend of herbal and organic products. On 
the basis of this report the company decided to diversify into new variety of soaps with 
natural ingredients having benefits and fragrances of Jasmine, Rose, Lavendear, Mogra, 
Lemon Grass, Green Apple, Strawberry etc. The Unique Selling Proposition (USP) was to 
promote eco-friendly living in the contemporary life style. The company decided to allocate 
1 
XII B Page 2 of 4 
 
Rs.30 crores to achieve the objective.  Identify the type of plan mentioned above which will 
help the company to acquire dominant position in the market.  
9 Differentiate between “Unity of Command” and “Unity of Direction” on three basis. 3 
10 i. Is controlling the last function of management? Explain.  
ii. How does controlling help in ‘ensuring order and discipline’? 
iii. Why is it said that “controlling is looking back”? 
3 
11 ‘If anything goes wrong with the performance of key activities, the entire organization 
suffers. Therefore, the organization should focus on them.’ Explain the statement with a 
suitable example.    
3 
 
12 
 
What is meant by ‘co – ordination’? Explain any two points of its importance in management. 3 
13 
 
“Planning helps the manager to look into the future and make a choice from amongst various 
alternative courses of action”. Which point related to importance of planning has been 
referred to in the above line? Name and explain it. 
Also explain any two other points related to the importance of planning. 
3 
14 An environmental conscious company 'GVN Ltd.' has its business in all parts of the country. 
The company follows certain well - defined business principles that result to minimize the 
employee turnover. Following are some of the environmental factors followed by GVN Ltd.: 
i. Honour the law of the country as well as that of the states in which it operates. 
ii. Respect the culture and customs of all states.  
iii. Provide clean and safe products to enhance the quality of life throughout the country.  
iv. Develop a culture in the company that enhances individual creativity and team work 
while honouring mutual trust and respect between management and labour.  
From the above (i) Identify and state any one general principle of management and any one 
dimension of business environment.  
(ii) Also identify any two values which the above guiding principles and environmental 
factors are conveying to the society.   
4 
15  Neeraj, a sales representative of 'Omida Ltd.' has changed seven jobs in the last one year. He 
is a hard working person but is not able to finalise deals with the customers due to his 
inadequate vocabulary and omission of needed words. Sometimes he uses wrong words 
because of which intended meaning is not conveyed. All this created a mis-understanding 
between him and his clients. 
(a) Identify the communication barrier discussed above.  
(b) State the category of this communication barrier.  
(c) Explain two other communication barriers of the same category.     
                 
4 
16 Explain the impact of policy changes on business and industry. (any four) 4 
XII B Page 3 of 4 
 
17 “It helps a manager to extend his area of operations as without it, his activities would be 
restricted to only what he himself can do”. Identify the activity referred to, in the above 
statement and state its elements.    
4 
18 Define the term ‘Leadership’ and explain its various styles.   4 
19 Name and explain the following methods of training:  
i. Trainee learns under the guidance of a master worker. 
ii. Trainees learn on the equipment they will be using. 
iii. Joint programme of training in which educational institutes and business firms 
cooperate. 
iv. The employees are introduced to their new jobs, fellow employees and to the 
company.  
4 
20  Two years ago Madhu completed her degree in Food Technology. She worked for sometime 
in a company manufacturing chutneys, pickles and murabbas. She was not happy in the 
company and decided to have her own organic food processing unit for the same. She set the 
objectives and the targets and formulated action plan to achieve the same.  
One of her objective was to earn 10 % profit on the amount invested in the first year. It was 
decided that raw materials like fruits, vegetables, spices, etc. will be purchased on 3 month’s 
credit from farmers cultivating organic crops only. She also decided to follow the steps 
required for marketing of the products through her own outlets. She appointed Mohan as a 
Production Manager who decides the exact manner in which the production activities are to 
be carried out. Mohan also prepared a statement showing the number of workers that will be 
required in the factory throughout the year. Madhu informed Mohan about her sales target for 
different products area wise for the forthcoming quarter. While working on the production 
table, a penalty of Rs. 100 per day for not wearing the caps, gloves and apron was announced. 
Quoting lines from the above para, identify and define different types of plans discussed. 
5 
21  Name and explain the technique of Scientific management which: 
i. Is the strongest motivator for a worker to reach standard performance. 
ii. Helps in establishing inter – changeability of manufactured parts and products.   
5 
22 A.R. Rehman is the first Indian to win Oscar award for his composition 'Jai Ho'. His 
composition of music is unique and different as he has used the singing notes in a manner that 
is entirely his own interpretation. Like A.R. Rehman ,  Rakesh, General Manager in Wave 
Ltd., uses his knowledge of management in a unique and different manner.  All the 
employees working under his guidance are happy and satisfied because of his behaviour.  He 
everyday rewards/appreciates the employees for coming office on time, performing their 
assigned tasks with best of their capabilities.  
i. Identify and explain the nature of the management highlighted above. 
ii. Also state two other ways in which nature of management can be explained. 
5 
XII B Page 4 of 4 
 
iii.Identify any one value that Rakesh wants to inculcate in his employees.  
 
23 Kiran Industries is a company manufacturing office furniture. The company chose to 
diversify its operations to improve its growth potential and increase market share. As the 
project was important many alternatives were generated for the purpose and were thoroughly 
discussed amongst the members of the organisation. After evaluating the various alternatives 
Sukhvinder, the Managing Director of the company decided that they should add ‘Home 
Interiors and Furnishings’ as a new line of business activity.   
 a) Name the framework, which the diversified organisation should adopt, to enable it to cope 
with the emerging complexity? Give three reasons in support of your answer.   
b) State any two limitations of this framework.         
       
6 
24 Explain the various steps involved in the process of selection of employees. 
 
6 
25 Smita had been working as an assistant manager with 'Johnson Enterprises' for the last ten 
years. She was very popular amongst her colleagues because of her commitment and 
dedication towards the work. When the manager senior to her retired, all her colleagues 
thought that now Smita would be promoted. But to everyone's surprise the vacant post was 
filled by an outsider, Mrs. Rita. Smita felt demoralised and her performance started declining. 
She would abstain herself often and could not meet her targets. 
Mrs. Rita was a good leader, who would not only instruct her subordinates but would also 
guide and inspire them. She noticed Smita's behaviour and felt that her performance could be 
improved. She started involving Smita in decision making-issues related to the organization 
and made her a part of high level joint-management committee. Smita was now punctual in 
office and her performance started improving. 
i. Identify the function of management being performed by Rita.  
ii. Name the element of the above function of management which helped Rita to 
improve Smita's behaviour. 
iii. State any four features of the element identified in (ii) above.     
6 
 
  
 
Subject: Business Studies 
 
 
1 What is meant by 'efficiency' in management? 
Ans.efficiency means doing the task correctly & with minimum cost. 
1 
2 Why do employees become lethargic when the organisation uses internal sources of 
recruitment? State.  
Ans. because they know they will get time bound promotions. 
1 
3 Laxmi Chemicals Ltd., a soap manufacturing company wanted to increase its market share 
from 30% to 55% in the long run. A recent report submitted by the Research 
&Development Department of the company had predicted a growing trend of herbal and 
organic products. On the basis of this report the company decided to diversify into new 
variety of soaps with natural ingredients having benefits and fragrances of Jasmine, Rose, 
Lavendear, Mogra, Lemon Grass, Green Apple, Strawberry etc. The Unique Selling 
Proposition (USP) was to promote eco-friendly living in the contemporary life style. The 
company decided to allocate Rs.30 crores to achieve the objective.  Identify the type of 
plan mentioned above which will help the company to acquire dominant position in the 
market.  
Ans. Strategy 
1 
4 At which level of management is planning function of management conducted? 
Ans. At all levels 
1 
5 How does Staffing improve job satisfaction & morale of employees? 
Ans. through objective assessment & fair reward for their contribution. 
1 
6 Bright industries have adopted a new policy of cost cutting. Instead of appointing 
employees on permanent basis, it has started recruiting them as ‘trainees’ on temporary 
basis to avoid increment benefits. It immensely benefitted the company in financial terms. 
However, after one month, the trainees started leaving the company due to job insecurity. 
As a result, financial savings made by the company were spent in the process of new 
recruitment. 
Identify the Fayol’s principle not observed by Bright industries. 
Ans. Stability of personnel 
1 
7 Name the incentive in which benefits like car allowance, rent free accommodation, 
medical facilities, etc. are offered to an employee. 
Ans. Perquisites 
1 
8 Identify the principle of scientific management which focuses on change in the attitude of 
workers and management towards one another from competition to co – operation. 
Ans. Mental revolution / Harmony, not discord. 
1 
9 ‘If anything goes wrong with the performance of key activities, the entire organization 
suffers. Therefore, the organization should focus on them.’ Explain the statement with a 
suitable example.    
Ans. The statement refers to use of ‘Critical Point Control’, while analyzing deviations.  It 
emphasizes that deviations in the key areas need to be attended more urgently as compared 
to deviations in certain insignificant areas. Control should, therefore focus on these key 
3